Contracts

In Hawaii, what is the 'risk of loss' rule for real estate under contract?

AA. The risk of loss always passes to the buyer when the contract is signed
BB. Under Hawaii law, the risk of loss remains with the seller until title passes at closing, unless the contract specifies otherwise✓ Correct
CC. The risk of loss is shared equally between buyer and seller during escrow
DD. The risk of loss passes to the buyer when they first view the property

Explanation

Hawaii follows the principle that risk of loss remains with the seller until closing (transfer of possession or title), unless the contract specifies otherwise.

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